thyssenkrupp (TKA) Q4 23/24 (Media) earnings summary

Executive summary

• Focus on green transformation, performance improvement, and portfolio realignment to restore profitability and future viability.

• Significant progress in all three strategic areas: performance, portfolio, and green transformation.

• Ongoing challenges from macroeconomic headwinds, geopolitical tensions, and structural industry changes.

• Commitment to climate-neutral steel production and decarbonization across all segments.

Financial highlights

• Sales decreased by 7% to €35 billion year-over-year, within the forecasted range.

• Adjusted EBIT reached €567 million, including €80 million in negative one-time effects.

• Net loss of €1.4 billion, mainly due to €1.2 billion in asset impairments and €270 million in restructuring expenses.

• Free cash flow before M&A was positive and above the original forecast, aided by early customer payments.

• Equity declined by €2.3 billion, mainly from pension remeasurement and currency effects; equity ratio at 35%.

• Net financial assets improved to €4.4 billion; liquidity position strong at €7.1 billion.

• Proposed unchanged dividend of €0.15 per share for the year.

Outlook and guidance

• Fiscal 2024–2025 expected to be a year of financial transition and strategic decisions.

• Sales forecasted to increase by 0–3% with demand stabilization in H2.

• Adjusted EBIT targeted at €600 million to €1 billion; net income expected between €100 million and €500 million.

• Free cash flow before M&A projected between -€400 million and -€200 million due to restructuring payments.

• Continued investment in R&D and green transformation initiatives.